Houses are the single most expensive thing that we own. Besides being bricks and mortar houses and everything we keep inside them are what we call home and it is our own responsibility to protect it. If anything was to happen to our home or all of the valuable things we work so hard to fill it with, then being insured is vital. So whether we own or rent any form of property there is only one answer when asking yourself 'do I need home insurance?' and of course that is 'yes'!
It can and often is a mandatory requirement when taking out a mortgage that building and contents insurance is in place. Depending on who your mortgage is with it may be possible to combine the insurance with your mortgage payments.
Although we may be able to leave the house everyday by locking the door or turning on a security system there is no guarantee that when we return home all is as we have left it.
The price and type of home insurance all depends on where you live and who it is that you live with, for example a family of 5 living in a detached country house will need a different policy to a student renting a city apartment. If you own a holiday property in the UK or abroad you can also insure these with ease.
There are two parts to home insurance and these are explained in detail below.
It is a sad fact that every day hundreds of houses are broken into and people's personal belongings stolen. Having your television set replaced is one thing but what if you had something stolen with genuine sentimental value or something that you cannot afford to replace? Insurance is a much needed safeguard for you and your family so that should the worst happen you can replace all of the valuables that were taken! This insurance is known as contents insurance.
Too many people assume that it won't happen to them or believe that they live in an area where burglary is uncommon, however when it does happen to those that least expect it, there is not only the financial burden but the distress caused to these people and their family around them.
It is not just burglary that could cause the need for a claim. House fires, flooding or some sort of explosion are other genuine potential hazards.
Just look around the room and think what the combined cost of each item you see is, the furniture, the TV, the hi-fi for instance if you are in the living room. This is just one room of course! Could you really afford to replace these things without having insurance in place?
You will be required to work out the value of the contents of your home and the insurance premium will be relevant to this valuation. The insurer will make this clear when you make your application.
It is also possible to take out insurance cover for any damage caused by yourself at home, known as 'accidental damage'.
The second type of home insurance available is building insurance and this covers the physical structure and it's permanent fixtures and fittings such as a fitted bathroom or kitchen, doors or windows. Accompanying buildings on your property such as your garage can also be insured.
You may look at your house and think it is not about to fall down but there is no telling what the elements can do or what misfortune can occur. Hurricanes, earthquakes, tornadoes, a fire to next doors house, leaking pipes, flooding are all examples of everyday occurrences around the world that could cause damage to your home.
Some insurance providers may offer a discount if for instance you have a security alarm system in place or if your home is fitted with smoke alarms.
'Do I need home insurance?', the answer is absolutely!